Tamil Nadu's spinning mills, buying cotton primarily from other states like Gujarat and Maharashtra, are signing contracts with shippers for delivery in July.CHENNAI: Yarn manufacturers have begun importing cheaper cotton from West African countries after a sudden inflation in the domestic market was triggered by traders holding onto stocks in view of better realisation and led to panic-buying in the last leg of the current cotton season ending September.

Tamil Nadu's spinning mills, buying cotton primarily from other states like Gujarat and Maharashtra, are signing contracts with shippers for delivery in July. Southern mills con sume about 40% of the 25 lakh bales consumed by spinners each month in the country. Industry estimates show that import of cotton this year will jump to touch 20 lakh bales from the estimated 11 lakh bales.

“About 16 mills had discussed the prospect of import about a week back and signed contracts for delivery in July. The crucial aspect is to not risk longer con tracts that may extend into October when the new season will begin and fresh supply could pull down domestic prices,“ said Prabhu Damodharan, secretary of Indian Texpreneurs Federation.

He said the hike in prices could impact output by garment exporters who compete with Bangladesh and Vietnam in key markets like the EU. Manikam Ramaswami, who runs the Rs 1,100 crore Loyal Textiles Mills, says 70% of the 30,000 bales for the next three months will be imported.